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Daum Law Office . RECEIVED APR 11 Z005 DAUM LAW OFFICE LCWTED5773TES Sponsorship Agreement 102590-96-Z-0739 U.S. POSTAL SERVICE CYCLING TEAM Services Purchasing Room 4541 475 L'Enfant Plaza SW Washington DC 20260-6237 RESPONDENTS 4 the Company that the Contract Term will not be further extended, which notice shall be provided to the Company on or before such July 1. 5. Indemnification. The Company agrees to indemnify, defend and hold the Sponsor, its subsidiaries and the affiliates of each such entity, as well as each officer, agent, distributor, employee; attorney, dealer, consultant, representative, contractor, successor and assign of any of the above, harmless from and against any and all expenses, damages, ; claims, suits, losses, actions, judgments, liabilities and costs whatsoever .(including, without limitation, attorneys' fees) arising out of: (i) the Company's breach, misrepresentation or non-performance under this Agreement; and (ii) any claim or action for personal injury, death, bodily injury, property damage or otherwise, suffered by participants, patrons or others at the Company; other than as a result of the; Sponsor's actions or negligence. 6. Insurance. The Company agrees to carry full insurance coverage (including comprehensive general liability) for all activities reasonably connected with this Agreement naming the Sponsor as an additional insured. 7. Trademark. (a) The Sponsor hereby grants to the Company the right to use such . trademarks, trade names, service marks or logos.owned by the Sponsor in connection with the implementation of this Agreement, as may be agreed to •- in writing from time to time by Sponsor and the Company. The Company shall have no interest in or right to the use of such names, marks or logos, except for .any limited right of usage which the Sponsor may grant in writing pursuant to this Agreement. Any such limited right shall, in any event, be expressly limited to any activities or promotions reasonably incident to this agreement. (b) The limited license granted hereunder is nonassignable and does not inure to the benefit of the Company's assigns and successors, except as permitted by .this Agreement, In the event the Company or any affiliate or agent attempts to transfer or assign this limited license, except as permitted by this Agreement, such limited license shall terminate immediately without further action from the Sponsor. (c) The Company hereby, grants to the Sponsor the right to use any trademark^ tradename or other name or logo which is an integral part of the name of the Company and the Team in advertising and promotional materials. The Sponsor shall have no other right to or interest in any. such name, mark or logo and this license shall be expressly limited to the activities or promotions reasonably incident to this agreement. 8. Prior Approval. Any advertising or other material prepared by the Company which contains the Sponsor's name or logo or which otherwise utilizes any trademark, trade name, service mark or logo owned by the Sponsor shall be provided to the Sponsor in advance of publication for its review. All such materials must receive the written approval of the Sponsor prior to any publication thereof, such approval not to be unreasonably withheld. Any advertising or other material prepared by the Sponsor which contains the Company's or the Team's name or logo or which otherwise utilizes any trademark, trade name, service mark or logo owned by the. Company shah1 be provided to the Company in advance of publication for its review. All such materials must receive the written approval of the Company prior to any publication thereof, such approval not to be unreasonably withheld. 9. Default; Remedies; Changed Circumstances. (a) The following events shall constitute an event of default ("Event of Default").under this Agreement regardless of whether any such event shall be voluntary or involuntary or shall result from the operation of applicable laws, rules or regulations or shall be pursuant to or in compliance with any judgment, decree or order of any court of competent jurisdiction: (i) Either party shall make any material misrepresentation or shall materially breach any warranty made herein; (ii) Either party shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or similar law, or shall make a general assignment for the benefit of creditors,-or shall have any involuntary case or other proceeding instituted against it seeking similar relief; or (iii) Either party shall otherwise fail to perform or observe any other covenant or condition set forth herein and such failure shall continue unremedied for a period of thirty (30) days after the receipt of written notice thereof from the nondefaulting party. (b) Upon the occurrence of an Event of Default, and at any time thereafter so long as the same shall be continuing, the nondefaulting party may declare, at its option, this Agreement to be in default and: (1) may immediately terminate this Agreement without any liability whatsoever; (2) may seek enforcement by appropriate court action of the terms hereof and recover damages for the breach hereof; (3) may exercise any other right or remedy available to it under law or in equity; or (4) may seek any, permitted combination of such remedies. No remedy is intended to be exclusive, but each shall be cumulative and the exercise of any such remedy shall not... preclude the simultaneous or later exercise of any other remedy. (c) In the event there are changed circumstances that do not constitute an Event of Default but which in the reasonable opinion of Sponsor materially reduce the anticipated benefits of the Team sponsorship to Sponsor as set forth on Exhibits A and D, then Sponsor will have the right, upon 30 days! prior written notice to the Company, to a reasonable proportionate reduction in the amount of this sponsorship fee to be paid by Sponsor hereunder. By way of example, such changed circumstances would include: (i) beginning in 1996 the Team fails to recruit at least 2 proven European riders, such as Ekimov, Jaskula, Boardman, Veenstra or other riders of similar ability; (ii) in 1996 the Team fails to compete in twenty total races, 10 races in Europe, 1 race in China and 1 race in Japan; (iii) in 1997 the Team fails to recruit riders with sufficient points to rank as one of the top 20 UCI teams, which .' the Company and Sponsor anticipate will allow the Team to qualify for the 1997 Tour de France and other major races in Europe, America, Asia and Classic races in 1997; or (iv) the total amount of documented media exposure is less than the ad equivalency of $10 million per year (domestically and internationally); 10. Representations, Warranties and Covenants of the Parties. Each party represents and warrants to the other party that: (1) the execution, delivery and performance of this Agreement have been duly authorized by all necessary actions; (2) this Agreement is a valid and binding obligation of such party enforceable against it in accordance with its terms; (3) there are no pending actions or proceedings, or threatened actions or proceedings, which if adversely determined would impair either party's right to perform its obligations hereunder, and (4) each party has authority, subject to the terms of this Agreement, to grant the promotional rights to the other party which are the subject of this Agreement 11. Assignment. This Agreement shall be binding upon and inure to the benefit of the parties, their respective successors and permitted assigns to the extent assignment is permitted. Neither party shall assign its rights under this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed; provided, however, that either party shall have the right without the consent of the other party to assign .this Agreement in connection with the sale of all or substantially all of. its assets. 12. Independence. The parties shall at all times act independently. Nothing contained in this Agreement shall be construed to make one party the partner, joint.venturer, principal, agent or employee of the other party hereto. Specifically, neither party shall have the express or implied authority to act for or on behalf of the other party. 13. Governing Law and Rules. The validity, interpretation and construction of this Agreement, and all other matters related to this Agreement, shall be interpreted and governed by the federal laws of the United States of America. The performance of the obligations of the parties under this Agreement shall at all times and in all events be subject, to compliance with all applicable rules of the Union Cydiste /merramo/io/e, the Federation Internationale du Cyclisme Professional; the United States Professional Cycling Federation, Inc.-, the International Olympic Committee, the United States Olympic Committee, the International Amateur Cycling Federation, the United States Cycling Federation and all other governing organizations. 14. Entire Agreement. This Agreement, together with .the Exhibits hereto and any extensions or renewals hereof, constitutes the parties entire agreement with respect to the subject matter hereof and supersedes all prior statements or agreements, both written and oral. This Agreement may be amended only by a writing signed by the Company and the Sponsor. .15. Notices. All. notices shall be sent or delivered in writing to the parties at the following addresses or at such other address as may have beeri furnished by such party in writing to the other party: Montgomery Sports, Inc. \: 600 Montgomery Street, Suite 2100 . San Franciscov CA 94111 Attention: Thomas W.Weisel, President United States Postal Service 475 L'Enfant Plaza, S.W. Washington, D.C. 20260 Attention: Susan M. Brownell Contracting Officer, Services Purchasing IN WITNESS WHEREOF, the parties hereof have executed this Agreement as of the date first above written.
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